Buy vs. Lease

Getting behind the wheel of a car as its new owner is a wonderful feeling that every driver should experience at least once. Fortunately, buying and leasing are two viable options for many drivers but one may fit their financial situation better than the other. When it comes down to getting a new car, it’s best to examine all of the options available rather than go with whatever is most familiar.

Drivers interested in owning a vehicle for years to come would be best to buy it outright. Buying a vehicle comes with a whole host of benefits. Drivers are free to modify the vehicle as they please and minor damages aren’t a huge problem.

Choosing to buy a vehicle also allows the driver to gain equity as long as they continue to make payments. Once the car is paid off, there are no other payments to be made outside of gas, insurance, and repairs down the road. There aren’t any mileage restrictions for drivers who choose to buy a vehicle outright either.

Unfortunately, buying a car has some downsides as well. First, there’s no guaranteed resale value and most dealerships require a rather hefty down payment. Payments tend to be higher when purchasing a vehicle, because you’re paying for the whole vehicle, unlike with a lease where you pay for a pre-determined amount of the vehicle’s total purchase price.

Leasing a car offers a different set of benefits for drivers. A lease is essentially a long-term rental where drivers pay the difference between a pre-determined value and the new vehicle price. As a result, monthly payments can be much more affordable.

The length of a lease is usually covered by the basic bumper-to-bumper warranty as well. Drivers will also have access to the latest technologies every few years if they continue to lease.

Like buying, leasing has a few downsides as well. Mileage restrictions with overage fees are fairly common across the board. Drivers also can’t modify the vehicle as they please. There’s also no chance to resell the vehicle and there’s no equity to gain as a result. A lease usually requires a fairly high credit score as well.